The Chronicle (UK)

PM: We can’t spend our way out of this

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BORIS JOHNSON warned the Government cannot “completely shield” people from the rising cost of living, as he came under fire for not using the Queen’s Speech to promise more support.

The Prime Minister used the Queen’s Speech, delivered for the first time by the Prince of Wales, to set out plans for changes to create a “high-wage, high-skill” economy, claiming the Government’s programme would “build the foundation­s for decades of prosperity”.

But charities, campaigner­s and opposition politician­s criticised the lack of any short-term measures to help people faced with soaring costs in their day-to-day lives.

The Prime Minister hinted at future help, using the “fiscal firepower” of the Government.

“We will continue to use all our ingenuity and compassion for as long as it takes,” he told MPS.

“The Chancellor and I will be saying more about this in the days to come.”

But he warned there were limits on how much public money he was prepared to commit to addressing a global economic crisis.

Labour leader Sir Keir Starmer called the response to the situation “pathetic”, telling Mr Johnson: “This Government’s failure to

grow the economy over a decade, combined with its inertia in the face of spiralling bills, means that we are staring down the barrel of something we haven’t seen in decades, a stagflatio­n crisis.”

The government’s package also contains measures aimed at taking advantage of the freedoms offered by Brexit - but there was no legislatio­n to implement the Government’s threat to tear up the deal on Northern Ireland’s trading arrangemen­ts, although officials said that remained an option.

But with rising energy bills, inflation forecast to hit 10% and benefits and wages failing to keep up with the increase in prices, the cost of living is set to dominate domestic politics in the coming months.

The Government highlighte­d the £22 billion package of help with energy bills, tax cuts and other measures already announced.

But its focus is on generating economic growth to help address the issues rather than increasing state support, with the public finances already battered by the billions borrowed to address the pandemic.

“After two years of Covid-19, I know that the last thing people need are further challenges. I know people are struggling with their bills and that they are anxious about the future,” Mr Johnson said.

“While we must keep our public finances on a sustainabl­e footing - and we cannot completely shield people from the fallout from global events - where we can help, we will.”

Mr Johnson said the “aftershock­s of Covid-19 and the biggest war in Europe since 1945” are causing disruption around the world, with all major economies facing cost-of-living pressures.

“It is right that we continue doing whatever we can to ease the burdens people are grappling with now.”

Mr Johnson also said the Government’s “top priorities” are growing the economy, making streets safe, and supporting the NHS to clear the backlogs built up during the pandemic.

 ?? ?? Keir Starmer and Boris Johnson yesterday
Keir Starmer and Boris Johnson yesterday

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